GoldMining Inc CEO Alastair Still says the price of gold will rise due to inflation concerns. He also states that even a $1,800 price point offers many opportunities for mergers and acquisitions. The focus of gold, Bitcoin and other crypto money investors is Fed Chairman Jerome Powell’s speech tomorrow. In this environment, market analyst Sagar Dua paints the technical picture of gold.
“As markets become turbulent, we will seek gold”
GoldMining Inc CEO Alastair Still shared his views on the markets at the PDAC 2022 Convention in Toronto. The famous CEO says that gold prices will rise. He explains the reason for this as follows:
We’re all talking about inflation. It’s on the tip of everyone’s tongue these days. And I think as the markets become turbulent, we will seek gold as a safe haven.
“We are still in an upward trend on the gold price”
Alastair Still also explains his views on gold mining. In this context, he makes the following assessment:
We are still in an uptrend on the gold price. Our Chairman-Founder Amir Adnani has been very successful in buying properties when the market has downturns and downturns. Currently, gold has taken many of the properties we owned when it was close to $1,200 or $1,300. From a M&A perspective, a gold price of $1,800 brings many projects to the table. If we can maintain this price, many operations will remain in the game.
Alastair Still: I think it’s a buying opportunity
Still, he says it’s “a runway for gold to rise” due to inflationary pressures and stock market disruptions. When asked about the benefit of holding a gold mining stock as opposed to physical gold, Still explains:
I would say this creates a buying opportunity. Gold stocks moved in step with the broader market. So they diverged a little from the gold price. Gold price is still above $1,800. We think it can go even higher. I think this is a buying opportunity. Investing in the physical metal is one thing, but if you’re also heavily dependent on it through gold mining, I think it’s an even better investment opportunity.
Gold technical analysis: A new selling leg is on the way
Market analyst Sagar Dua analyzes the technical outlook for gold and DXY as follows. Gold price made an unsuccessful attempt to sustain above the critical $1,840 resistance on Monday. The precious metal turned sideways after a bearish move. Therefore, it is likely to increase its losses after breaching the critical support at $1,820.85. It seems that the headline of banning Russia’s gold exports by the G7 countries has lost its importance. Investors seem to be focusing on the solid fundamentals of the US dollar index (DXY) again.
Gold price is fluctuating near the potential demand zone, which is in a narrow range of $1,821.45-1,823.57 on an hourly scale. The precious metal is up for auction at $1,833.56 below the 200-period Exponential Moving Average (EMA). This adds to the downstream filters. Meanwhile, the Relative Strength Index (RSI) (14) slipped into the 20.00-40.00 bearish range, indicating a new selling leg is on the way.
DXY displayed responsive buying action around 103.70. It then trades below the 104.00 round resistance. The announcement of upbeat Durable Goods Orders supported the DXY bulls. Economic data fell 0.7%, above the 0.1% forecast and the previous 0.5% release. This revealed that the overall demand structure in the US economy is rock solid. Demand prospects are resilient despite the headwinds of rising price pressures.
Gold and cryptocurrency investors await Powell’s speech
Going forward, the focus of bullion, Bitcoin and crypto investors will be on Fed chair Jerome Powell’s speech Wednesday. As you follow on Kriptokoin.com, Jerome Powell will dictate possible monetary policy action in July.
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